By David Saks, Broker / Industry Analyst
#2853 A home sold for $750,000 with a profit of 20% at closing. How much did the home cost originally ? Take your time. The solution is below the wildlife photo. A, $625,000 In this problem you have to remember to add a whole number to the divisor which includes the converted percentage into decimal. The whole number is 1 and the decimal is .20 or .2 which is also the 20% profit. Therefore, we divide the sale price of $725,000 by 1.2 and find that the home originally sold for $625,000.